This will be my latest short update as Im still in Romania and going home to Denmark again later today,, so tomorrow we will have full updates on markets.
Yesterday we had a nice near -3% down day,, well I'm still long but I like the big move down as it usually is incline with short term bottoms too.
What is very interesting is that markets ended up very good only -1.9% or so with a so called , bullish red hammer reversal candlestick. I give it 70% chances that the bottom is in now and a major rally is to be expected.
Right now Im as bullish as I were early October where I alerted a big bottom was due for this year. We are NOT going to take out new lows ,, this is a trap for bears and we should soon start a massive rally into year end and my target for this rally is 1330-1360.
We are still making the right shoulder in some huge daily chart inverted head and shoulders pattern and I believe that the right shoulders went in yesterday - after this you should begin expect a big rally to the upside which could start from Tuesday.
What is even more good looking is that markets rallied from 1080 to 1290s area and then pulled back to 1180s area which is a perfect 50% fib retracement from those levels.... so everything inline with this is just a pullback before a massive move higher to 1290 and above imo.
Remember I were a few days too early calling the bottom for 2011 , I nailed it to the penny on the day , but called the lows few days before ,, same happended with the move down from here , I called to short markets after EU package ,, tell me what happended after they came with this package? Markets popped big,,, and then dropped since then.... Now im probably few days too early calling the rally , but I think over rest of this week and next weeks you will see what I meant.
Conclusion: Remain heavy long markets in small caps , long TNA 43.5 big size position , EDC 18 size position and remain long lots of good looking small caps.
Remember to join www.nwatrading.com in case you want live help about stocks to buy and sell with targets and live intraday analysis about markets.
Back home in Denmark this evening so will have full updates with charts tomorrow.
What is your time frame to hit 1290?
ReplyDeleteHi JFK
ReplyDeleteJust came home from Denmark
Sometimes by mid early/mid December
I think break below triangle was sign to get out longs. This is not normal market that is why this Thanksgiving market is going to be a real turkey. Europe is on everyone's mind & no solutions in the near future. We may have to wait till next year.
ReplyDeletewhat good looking small caps you have??
ReplyDeleteSqwii, in July, SP500 dropped straight down from 1346 to 1102 without much bounce, a drop of 244 points. If this is a possibility, is there a certain level that you will exit the longs at a loss?
ReplyDeleteThis week is the most consecutive days down since August. Its starting to get ugly. I dont see anything bullish in the charts. We may be down 100 pts since last high by tommorow.
ReplyDelete